Multibreeder signs loan

Multibreeder signs loan

JAKARTA (JP): PT Multibreeder Adirama Indonesia, a poultry
company listed on the Jakarta Stock Exchange (JSX), signed an
agreement in Singapore yesterday on a syndicated credit facility
worth US$15 million.

Suryo Yusuf, a director of Multibreeder, told reporters here
that the credit facility, arranged by the Singapore branch of
Sanwa Bank Ltd., would be used to finance the expansion of the
company's day old chick production.

"The annual DOC production capacity will be increased from the
present 80 million to 150 million within three years," he said,
adding that three hatcheries will be established early next year
in order to support the production expansion program.

He said that Multibreeder, which at present operates a number
of hatcheries in West and East Java, Bali and Lampung, plans to
further expand its operation to North and West Sumatra, Sulawesi
and Kalimantan.

"A survey is now underway to find suitable sites for
hatcheries in North and West Sumatra," he said.

The credit facility will mature in three years and will carry
an interest rate of about two points above the three-month
Singapore Banks Offered Rate, now at 6.375 percent per annum.

Suryo said the credit facility, managed by the Singapore
branch of The Long-Term Credit Bank of Japan, was oversubscribed
by 20 percent.

Participating banks in the syndicated loan include the Jakarta
branch of ABN Amro Bank, the Singapore branch of BNP, the
Singapore branch of Credit Lyonnais and the Singapore branch of
Rabo Bank Netherlands.(hen)